INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Environment INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

In 2019, Amazon co-founded The Climate Pledge— a commitment to achieve net-zero carbon emissions across our business by 2040 and to invite others to sign on to this new level of ambition.

As part of our path to the Pledge, Amazon has made significant commitments toward reaching our goal:

25 Renewable Energy On a path to powering our operations with 100% renewable energy by 2025

Shipment Zero Making 50% of all shipments 30 net-zero carbon by 2030 Net-Zero Carbon Reaching net-zero carbon emissions across our 40 operations by 2040 Amazon Sustainability Report | 2020 12 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES 100K 100M

Electric Delivery Vehicles Deploying 100,000 custom electric delivery vehicles by 2030 2B Right Now Climate Fund Investing $100 million in reforestation projects and climate mitigation solutions

Climate Pledge Fund Investing $2 billion to support the development of decarbonizing technologies and services

Amazon Sustainability Report | 2020 13 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Our Carbon Footprint

While Amazon’s 2020 carbon footprint reflects the growth of our business to meet increasing customer demand during the COVID-19 pandemic, we made significant progress in reducing the carbon intensity of our business activities in 2020, following our investments in large-scale, long-term decarbonization solutions. We also saw a decrease in the absolute emissions from purchased electricity—a result of our investments in global renewable energy projects that came online in 2020—despite increasing our buildings square footage to keep pace with our business growth. Our renewable energy investments made Amazon the world’s largest corporate buyer of renewable energy in 2020, and we achieved 65% renewable energy across our operations, up from 42% in 2019. Like many companies and countries in high growth mode, we consider both the absolute tons of carbon in our footprint and the change in our carbon intensity. Our carbon intensity metric quantifies total carbon emissions, in grams of carbon dioxide equivalent (CO₂e), per dollar of gross merchandise sales (GMS). It is a metric commonly used to What is a carbon footprint? benchmark performance year over year, as it provides a relative comparison between annual metrics regardless of Our corporate carbon footprint quantifies the total greenhouse gas emissions attributed to Amazon’s direct and indirect other changes to our business. This metric is helpful to assess operational activities. We use a comprehensive, hybrid carbon our progress toward our Climate Pledge goal of reaching footprint approach to transform physical and financial data net-zero carbon by 2040, even as our business grows. into emissions measurements for Amazon’s specific business While Amazon’s business grew significantly in 2020 and activities. This allows us to calculate Amazon’s total impact on the climate, map the largest activities contributing to this our absolute carbon emissions increased 19% during the impact, and develop meaningful carbon reduction strategies to same period, our overall carbon intensity decreased 16%, reach net-zero carbon emissions across our business by 2040. from 122.8 grams of CO2e per dollar of GMS in 2019 to

102.7 grams of CO2e per dollar of GMS in 2020. This carbon intensity value is in line with the targets we are developing See Amazon’s 2018-2020 carbon footprint on page 111. through the Science Based Targets Initiative (SBTi), the industry leader in helping companies set science-based

Amazon Sustainability Report | 2020 14 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

Carbon Emissions (mmt CO2e) Market stores and other Amazon physical stores in 2020 Carbon Intensity (grams CO e / $ GMS) 2 and shifted to home delivery instead, which generates lower carbon emissions. We also saw less business travel 70 140 128.9 122.8 60.64 and employee commuting as a result of many of our 60 120 employees working from home for most of the year. 51.16 50 100 44.40 102.7 We also saw a reduction in our carbon intensity at the package fulfillment level, which measures the emissions 40 80 from our business activities to deliver packages to our 30 60 customers’ doorsteps. This calculation—measured in grams

20 40 of CO2e per package delivered—includes the emissions generated by our fulfillment operations where items are 10 20 picked off the shelf and packages are sorted, the well-to- 0 0 wheel emissions across our transportation network, and the lifecycle emissions of the packaging we use to protect items during transit. Similar to our overall carbon intensity 2018 2019 2020 improvement, this reduction was driven by a combination of our investments in renewable energy to power our emissions reduction targets. Amazon joined SBTi in May fulfillment facilities, efficiencies in our transportation 2020 and will publish our science-based targets in 2022, in network to deliver packages, and reductions in the accordance with SBTi’s target setting process. packaging materials we use for each package. This year-over-year carbon intensity comparison reflects It will take several years for the carbon reduction benefits of our early progress to decarbonize our operations as we also our investments to be fully reflected in our footprint. While continue to grow as a company. Nearly half of our carbon we are still in the early phase of decarbonizing our business, intensity improvement is a result of our investments we are pleased to see meaningful progress in several areas. in renewable energy and operational efficiency We will continue to rapidly scale our investments in carbon enhancements. A third of this improvement reflects a shift reduction solutions that have large, long-term impacts that in customer and employee behavior due to the COVID-19 will move us forward on our path to net-zero carbon by pandemic. Customers made fewer trips to our Whole Foods 2040. As these investments become embedded across our business, our carbon emissions will continue to decouple from our business growth, reflected in our carbon intensity metric. Eventually, we will reach a point where the absolute Shopping Online vs. In Store carbon emissions of our business will drop, even as our Amazon’s sustainability scientists have spent years developing business itself grows. the models, tools, and metrics to measure our carbon footprint. This report covers the extensive investments and efforts Their detailed analysis found that shopping online consistently generates less carbon than driving to a store, since a single we are making across Amazon to decarbonize our business delivery van trip can take approximately 100 roundtrip car through our Climate Pledge commitment of achieving net- journeys off the road on average. Our scientists developed a zero carbon emissions by 2040. model to compare the carbon intensity of ordering Whole Foods Market groceries online versus driving to the nearest Whole LEARN MORE ABOUT THE SCIENCE AND Foods Market store. The study found that, averaged across TECHNOLOGY BEHIND OUR CARBON FOOTPRINT all basket sizes, online grocery deliveries generate 43% lower IN OUR CARBON METHODOLOGY carbon emissions per item compared to shopping in stores, and smaller basket sizes generate even greater carbon savings. READ THE GREENHOUSE GAS EMISSIONS VERIFICATION STATEMENT FROM OUR THIRD- PARTY AUDITOR, APEX

Amazon Sustainability Report | 2020 15 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES The Climate Pledge

The Climate Pledge has more than 100 signatories across 25 industries and 16 countries net- as of June 2021.

The Climate Pledge is a commitment to achieve net-zero carbon by 2040— 10 years ahead of the Paris Agreement. Signatories of the Pledge form a cross- zero sector community of companies, organizations, and partners working together to address the climate crisis and solve the challenges of decarbonizing our economy. Joining The Climate Pledge is an opportunity for companies to be part of a community of leading businesses committed to transformational action to protect the global economy from the disruptive risks associated with climate change.

VISIT THE CLIMATE PLEDGE WEBSITE

Amazon Sustainability Report | 2020 16 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

Signatories of The Climate Pledge agree to three principal areas of action:

Regular Reporting Measure and report greenhouse gas emissions on a regular basis.

Carbon Elimination Implement decarbonization strategies in line with the Paris Agreement through real business changes and innovations, including efficiency improvements, renewable energy, materials reductions, and other carbon emission elimination strategies.

Credible Offsets Neutralize any remaining emissions with additional, quantifiable, real, permanent, and socially-beneficial offsets to achieve net-zero annual carbon emissions by 2040.

Amazon Sustainability Report | 2020 17 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

Co-Founding The Climate Pledge Scientists tell us that we have a limited window to make unprecedented headway in order to limit global warming We’ve decided to use to 1.5 degrees Celsius by 2050. No one company or organization can do this on its own. Everyone must do our size and scale to their part in this unprecedented effort—business does make a difference. If a not operate in a vacuum. To drive collective, cross-sector action, in 2019, Amazon co-founded The Climate Pledge company with as much with Global Optimism, on the conviction that global businesses are responsible, accountable, and able to act “physical infrastructure as on the climate crisis. Amazon—which delivers Partnering to Drive Change more than 10 billion The Climate Pledge and Global Optimism are partnering with the We Mean Business coalition and several other items a year—can meet organizations in the largest effort to date to mobilize the private sector to reach net-zero carbon by 2040. This the Paris Agreement 10 partnership will demonstrate that corporate leaders can go further and faster on climate action. The Climate Pledge years early, then any and We Mean Business coalition also provide resources and support to TED Countdown, Race to Zero, and the Science company can. Based Targets Initiative (SBTi), urging companies to respond – Jeff Bezos, Amazon Founder and CEO to the climate crisis by setting specific, measurable targets. ”

Amazon Sustainability Report | 2020 18 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES The Climate Pledge Fund

The Climate Pledge Fund is a corporate venture capital CarbonCure Technologies: CarbonCure Technologies fund that invests in companies that can accelerate has commercialized lower carbon concrete. CarbonCure’s Amazon’s path to meeting The Climate Pledge. Amazon process works by injecting recycled carbon dioxide into fresh launched The Climate Pledge Fund in 2020 to support concrete during mixing, permanently sequestering carbon the development of sustainable and decarbonizing dioxide and enabling the reduction of cement content in technologies and services. This dedicated investment mixes without impacting concrete performance. Amazon program—with an initial $2 billion in funding—invests in is working to lower the embodied carbon footprint of our visionary companies whose products and solutions will buildings by using CarbonCure concrete in new construction, facilitate the transition to a low-carbon economy. including in Amazon’s second headquarters in Virginia. Infinium: Infinium is a renewable electrofuels solution The Climate Pledge Fund invests in companies provider that converts carbon dioxide and hydrogen across multiple industry sectors with an initial feedstocks into net-zero carbon fuels for use in today’s air focus on: transport, marine freight, and heavy truck fleets. Infinium Transportation and logistics electrofuels enable organizations to meet their carbon reduction goals by accelerating the transition away from Energy generation, storage, and utilization fossil fuels. Amazon is investing in Infinium to support Manufacturing and materials decarbonization efforts in the transportation sector. Circular economy Ion Energy: Ion Energy is a software developer based in Mumbai and Paris that provides advanced battery Food and agriculture management solutions to owners and operators of battery Renewable energy technology fleets used in stationary and mobile applications. Ion Energy’s software and modeling tools provide a look into

the state of life of those batteries, and improve the way Climate Pledge Fund Investments batteries are charged and drained for maximum value. Since launching The Climate Pledge Fund in 2020, Amazon Amazon operates batteries across our operations and has made investments in the following companies. we believe energy storage will play an important role in BETA Technologies: BETA Technologies is an electric achieving net-zero carbon. Vertical Takeoff and Landing (eVTOL) company that is Pachama: Pachama is a climate technology company that building electric aircraft that can be used in cargo and is democratizing access to nature-based carbon markets. logistics. Their first aircraft, the ALIA, is capable of flying Pachama’s technology harnesses satellite imaging with cargo and logistics missions. Amazon is investing in a artificial intelligence to verify the impact of carbon capture variety of companies that can advance our path to zero- in nature-based offset projects around the world. Amazon emissions package delivery. is investing in Pachama to expand the use of nature-based solutions for carbon sequestration.

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Redwood Materials: Redwood Materials is transport passenger or cargo payloads with zero carbon commercializing a full process and suite of technologies emissions. Amazon is investing in ZeroAvia to support for recycling end-of-life lithium-ion batteries and e-waste decarbonization efforts in the transportation sector. into high value metals and chemicals. With Amazon’s commitment to electric delivery and electrification VISIT THE CLIMATE PLEDGE FUND TO LEARN MORE OR MAKE AN INQUIRY infrastructure, Redwood Materials has the potential to help Amazon properly recycle electric vehicle batteries and reuse their components. Redwood Materials can also help recycle the lithium batteries and e-waste from other parts of Amazon’s businesses. The Climate Pledge Fund Rivian: Rivian is an electric vehicle maker and automotive is another important technology company that develops and produces vehicles, products, and services related to sustainable example of how the transportation. Amazon ordered 100,000 custom electric vehicles from Rivian in 2019, and has since participated collaborative effort of in the company’s latest rounds of investment. With the proceeds from these investments, Rivian is further “The Climate Pledge can developing and integrating its connected electric platform with Amazon’s last mile delivery network. accelerate the transition Turntide Technologies: Turntide Technologies develops to a net-zero world. efficient motor technologies that reduce the energy consumed by heating, ventilation, and air conditioning in – Christiana Figueres, Former Executive Secretary buildings. Amazon is piloting Turntide’s motors in a number of the United Nations Framework Convention on Climate Change and Co-Founder of Global Optimism of our buildings, significantly reducing electricity usage.

ZeroAvia: ZeroAvia is a leader in zero-emission aviation, focused on developing hydrogen-electric aviation solutions that will progressively enable turbo-propeller aircraft to ”

Amazon Sustainability Report | 2020 20 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Nature-Based Solutions

Nature-based solutions are conservation, restoration, and improved land management activities that increase carbon storage in areas such as forests, wetlands, peatlands, and grasslands. Nature-based solutions provide additional benefits to preserve the natural world, such as conserving wildlife habitats, protecting biodiversity, improving water quality, and reducing flood risk. All of these benefits can enhance well-being in communities around the world. $10 0M Amazon uses nature-based solutions to mitigate carbon To restore and conserve forests, wetlands, emissions outside of our value chain, supplementing and grasslands around the world the carbon-reduction efforts we are driving across our business operations. We follow scientific research to fund Protecting the World’s Tropical Rainforests initiatives that are critical to hitting the targets of the In 2021, Amazon joined the LEAF (Lowering Emissions by Paris Agreement and staving off the most catastrophic Accelerating Forest finance) Coalition, a global initiative of effects of climate change. We also focus on large-scale governments and leading companies that aims to raise at transformations which would be unlikely to occur without least $1 billion to protect the world’s tropical rainforests. significant new investment. This ambitious public-private project is designed to accelerate climate action by providing financing to help Right Now Climate Fund countries protect their tropical rainforests. The LEAF In 2019, Amazon created the Right Now Climate Fund, Coalition is expected to become one of the largest a $100 million fund to restore and conserve forests, initiatives ever to protect tropical forests and support wetlands, and grasslands around the world. Through the sustainable development, and will benefit billions of Right Now Climate Fund, Amazon is taking immediate people around the world who depend on rainforests. action to avoid and remove carbon emissions by To mobilize financing, coalition participants pay for high- supporting nature-based climate solutions. quality emissions reductions from tropical and subtropical forest countries, supporting efforts to reduce and end Global Projects deforestation. Along with Amazon and other leading Amazon identifies initiatives that create real and lasting companies, the coalition’s initial participants include the carbon reductions, while also empowering communities, governments of Norway, the United Kingdom, and the enhancing natural environments, and protecting wildlife. United States.

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Family Forest Carbon Program Appalachians, develop a scientific approach to regional and Forest Carbon Co-Ops carbon impact measurement, and enhance the project verification methodology. In 2020, Amazon committed $10 million to support two programs in collaboration with The Nature Conservancy. As the largest funder of these programs, Amazon is These programs, the Family Forest Carbon Program and enabling an estimated net reduction of 18.5 million the Forest Carbon Co-Op Project, help family forest owners metric tons of carbon dioxide in the atmosphere by 2031, sequester carbon across the Blue Ridge to Boreal region equivalent to a year of emissions from nearly 4 million of the eastern United States. Scientists at The Nature U.S. cars. Our investment supports conservation and Conservancy have identified this network of land as sustainable land management of 4 million acres of family disproportionately important for conserving biodiversity forests across a 2,000-mile span of the Appalachians and and mitigating climate change. Across the U.S., more than beyond. Amazon’s support also generates local economic 10 million families and individuals own 38% of forest opportunities by creating a new source of income for lands, making family forest owners critical partners in family forest owners and rural communities that taps into conservation and restoration efforts. the carbon storage potential of forests.

The Family Forest Carbon Program opens up carbon Urban Greening in Germany credit markets to owners of small forests for the first time. Amazon’s support expands this program in the In 2020, Amazon committed €3.75 million to The Nature Appalachians and other U.S. regions, promoting the design Conservancy’s Urban Greening program to help cities of new methods to measure and verify reforestation and promote biodiversity, reduce urban heat islands, and forest management practices. improve stormwater management in the face of climate change. With Amazon’s support, the program launched in The Forest Carbon Co-Op helps owners of mid-sized Berlin’s Charlottenburg-Wilmersdorf district in 2020 and will forests use sustainable forest management and expand to two additional German cities over five years. The protection measures to earn income through the carbon goal is to share a guide to urban greening with municipalities credit market. Amazon’s grant supports efforts to expand across Europe by the end of the five-year project. the program in climate resilient forests across the

Bringing together government and private- sector resources is a necessary step in supporting “the large-scale efforts that must be mobilized to halt deforestation and begin to restore tropical and subtropical forests.

– John Kerry, U.S. Special Presidential Envoy for Climate

” Amazon Sustainability Report | 2020 22 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

Sustainable Operations Amazon is taking a broad, science-based approach to reducing carbon emissions and improving efficiency across our operations.

E

Amazon Sustainability Report | 2020 23 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Shipment Zero

Shipment Zero is our goal to deliver 50% of Amazon shipments with net-zero carbon by 2030. Achieving Shipment Zero means that the fulfillment operations we undertake to deliver customer shipments are net-zero carbon—from the fulfillment center where an item is picked off the shelf, to the materials used to package the item, and the mode of transportation that gets the package to the customer’s door.

Fulfillment Facilities Shipment Zero starts with our world-class fulfillment facilities where we stock items, process orders, and prepare shipments for delivery to customers. A Shipment Zero order will travel through facilities powered by 100% clean energy from wind and solar projects that are dedicated to serving Amazon’s electricity needs. As of June 2021, more than 90 of our fulfillment facilities are powered by on-site rooftop solar installations, which generate as much as 80% of a single facility’s annual energy needs. We are also working to optimize energy use from building operations, using innovative robotics and conveyance systems to minimize the energy needed to move shipments throughout our facilities.

Learn more about our progress on renewable energy on page 26.

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Transportation

A Shipment Zero order will be transported in an electric delivery vehicle, or by a delivery associate on foot or on a bicycle. We are adopting electric and alternative delivery solutions across our network, and have made major investments in vehicle electrification, from the delivery vehicles themselves, to the charging infrastructure that powers the vehicles, to the renewable energy projects that produce clean energy. In 2020, we delivered more than 20 million packages using electric vehicles to customers across North America and Europe. We also leverage innovative technology to maximize efficiency on the road and reduce delivery distances by placing delivery stations close to large Amazon customer populations.

Packaging

A Shipment Zero order will ship without added Amazon packaging or in carbon neutral packaging. Thousands of products already qualify for delivery without additional Amazon boxes or packing materials through our Frustration-Free Packaging (FFP) programs, which incentivize manufacturers to develop more sustainable packaging solutions for online fulfillment. We are also developing new ways to deliver customer orders packaging-free. In more than 100 cities across India, for example, Amazon orders ship in their original packaging and are transported in protective containers that delivery drivers can reuse. Learn more about our progress on transportation on page 32.

Learn more about our progress on sustainable packaging on page 45.

Amazon Sustainability Report | 2020 25 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Renewable Energy

As part of our goal to reach net-zero carbon by 2040, Accounting for the Energy Amazon is on a path to powering our operations with 100% renewable energy by 2025—five years ahead of our Consumed by Amazon Devices original target of 2030. In 2020, we became the world’s In 2020, Amazon announced an ambitious goal to procure largest corporate purchaser of renewable energy, reaching new renewable energy equal to the amount of energy 65% renewable energy across our business. consumed by all Amazon devices, starting with Echo devices. To understand what this goal should encompass, As of June 2021, Amazon has 232 solar and wind projects we model and measure the energy consumed by our across the globe. These projects have a combined capacity devices in different types of use, then project their total to generate 10,000 megawatts (MW) and deliver 27 million average global annual electricity consumption. We have megawatt hours (MWh) of energy annually. These projects contracted the first new wind and solar farms to support helped power the 24 million MWh of electricity consumed this goal, which are currently under construction and are by Amazon in 2020 and led to a 4% reduction in our carbon expected to begin operating in 2022-2023. Until then, we emissions from purchased electricity from 2019 to 2020. are investing in renewable energy certificates that match Scaling up the use of renewable energy is central to the quantity of electricity used by every customer’s Echo Amazon’s strategy to decarbonize our operations. Clean device, based on the amount of energy we expect those energy sources, such as wind and solar, lessen Amazon’s new projects to generate. reliance on fossil fuels to power our operations and the services we provide to customers. We procure new LEARN MORE ABOUT OUR APPROACH IN OUR renewable energy beyond the existing grid mix through RENEWABLE ENERGY METHODOLOGY off-site contracts for wind and solar, on-site rooftop solar installations, and green tariffs with local utilities that result READ OUR 2020 RENEWABLE ENERGY ASSURANCE in new projects being added to the grid. STATEMENT FROM OUR THIRD-PARTY AUDITOR, APEX

Renewable energy across 65% our business in 2020 Amazon Sustainability Report | 2020 26 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

Around the Globe Learn more about some of Amazon’s renewable energy projects around the globe:

As of June 2021, Amazon’s largest A solar farm in Pittsylvania County, Our first operational off-site project renewable energy investment is a wind Virginia, will power Amazon’s new in Europe is the Alcalá de Guadaíra project in the Netherlands. Scheduled headquarters in Arlington and other solar park in Spain. This solar project for operation by 2024, this offshore Amazon operations in the region, provides 149 MW of renewable energy wind farm will have an overall capacity including Whole Foods Market stores for Amazon logistics facilities and AWS of 759 MW. Amazon is purchasing and Amazon fulfillment centers. data centers in Spain, equivalent to the more than half of that capacity—a Amazon is sharing the project with energy needed to supply more than total of 380 MW—to power our Arlington County through a public- 30,000 Spanish homes. operations in Europe. private partnership. Amazon has contracted 82 MW of the new 120-

MW solar farm and Arlington County will take the remainder of the energy generated from this project, which is planned for completion by the first quarter of 2022.

Our first renewable energy project In 2019, we installed the largest In 2020, we unveiled Amazon’s largest in Singapore is a 62-MW system of rooftop solar array in the state of solar rooftop installation in Europe at a ground-mounted solar panels. This Colorado at an Amazon fulfillment fulfillment center in the UK. The facility system allows for the solar panels to center in Thornton. The solar array is outfitted with more than 11,500 be optimally positioned to capture comprises more than 17,000 panels solar panels, which generate enough sun exposure as weather conditions spanning 19 acres, approximately electricity to power the equivalent of change. Upon its completion in 2022, the size of 14 football fields. The 700 homes in the UK for one year. the project is expected to generate 6-MW system generates enough

80,000 MWh of clean energy annually, energy to provide up to 45% of the enough to power more than 10,000 855,000-square-foot facility’s annual homes in Singapore. energy needs.

EXPLORE OUR FULL LIST OF PROJECTS BY GEOGRAPHY ON OUR WEBSITE

Amazon Sustainability Report | 2020 27 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Our Buildings

Amazon operates hundreds of world-class facilities in cities across the globe that serve our customers and support our local communities. We are designing buildings that help lead the industry toward net-zero carbon, while improving the resource efficiency of our facilities and prioritizing the health and wellness of our building occupants.

Decarbonizing Our Buildings Amazon is working to reduce the carbon emissions associated with our buildings, from the carbon embodied in construction materials, to the operational emissions from powering our activities. In 2020, we launched an in-depth study of our operations facilities to examine the energy intensity of our buildings and identify ways to reduce carbon through energy efficiency enhancements, new technologies, and sustainable building materials. We have started applying these insights across building types and are incorporating best practices into future building development plans.

The World’s First Net-Zero Carbon Arena In 2020, Amazon secured the naming rights to Climate Pledge Arena, slated to become the first net-zero carbon certified arena in the world. In November, the arena submitted its net-zero carbon registration to the International Living Future Institute, an industry leader in Reducing Carbon at Arlington HQ sustainable building practices. Construction plans for the Plans for our second headquarters in Arlington, Virginia, arena preserve the building’s existing roof and expand the feature a range of carbon reduction solutions and energy underground structure to reduce the embodied energy efficiency enhancements, including highly efficient use typical of new construction. The arena will feature all- building systems, high-efficiency lighting with advanced electric operations systems powered by 100% renewable controls, and a high-performing building envelope that electricity from on-site solar panels and off-site renewable facilitates climate control. All-electric central heating and energy projects. Events at the arena will be made fully net- cooling systems will eliminate on-site combustion for zero carbon by investing in forestry projects that sequester heating and domestic hot water, and a nearby solar farm any remaining carbon emissions from the arena’s operations will power the campus with 100% renewable energy. through nature-based solutions. Additional commitments The buildings will incorporate locally sourced materials, include eliminating single-use plastics, conserving water, to reduce the carbon impact of material transportation, and producing zero waste from the arena’s operations. and low-carbon materials, including low-carbon concrete

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supplemented with Carbon Cure technology, a Climate Pledge Fund investment. Buildings across our Arlington HQ are designed to achieve LEEDv4 Platinum certification, the highest green building certification by the U.S. Green Building Council. Our plans support the local community with five acres of landscaped public open space, new protected bike lanes, and urban design features that promote pedestrian connections and safety. Other human-centric design features include enhanced ventilation, increased access to daylight, and the Helix—an alternative work environment to support human connection with nature. The design of our Arlington HQ promotes wellness, collaboration, and connections to nature for the neighborhood and the 25,000 employees who will occupy the Arlington headquarters by 2025.

and showers to encourage low-carbon transportation for employees and visitors. Our flagship Seattle campus features some of our most innovative sustainable design practices. A district energy system below ground heats many of our buildings in the Denny Triangle neighborhood using waste heat generated 100%Renewable energy from a neighboring data center. Above ground, employees and visitors can enjoy The Spheres, an alternative workplace powering our Arlington HQ and indoor plant conservatory, with 40,000 plants from the cloud forest regions of more than 30 countries, and a 4,000-square-foot green wall. Many of our Seattle office Corporate Offices towers are certified LEED Gold, incorporating holistic Amazon’s global corporate offices are located in vibrant sustainability measures for energy and water conservation, communities and urban hubs. Many of our corporate improved indoor environmental quality, and healthy buildings offer plazas and open green spaces for material selection. communal and public use. Even more feature green roofs On the other side of the world, our offices in Munich are and other green infrastructure that provide outdoor certified Gold for environmental design by the German amenity space while supporting ecological functions Sustainable Building Council based on their energy- like green stormwater management. The interiors efficient interiors and use of sustainable building materials. integrate biophilic design concepts, such as green walls In Luxembourg, efficient chillers and an advanced building and locally sourced woods, along with energy-efficient management system cut energy costs, while rooftop lighting, composting and recycling, and amenity spaces beehives supply honey, and food is served in compostable for employee wellness. Many of our buildings also offer and biodegradable containers. plug-in electric vehicle charging stations, bike parking,

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Solar Rooftops in India Our operations teams in India began installing solar panels on buildings in 2017. As of June 2021, eight fulfillment centers and five sortation centers together produce a total of 12 MW of solar energy to power operations across facilities in Delhi, Hyderabad, Bangalore, Kolkata, and Mumbai.

daylighting techniques, such as skylights and large windows. We also utilize energy-efficient heating and cooling systems to reduce energy consumption. Across our grocery channels, we are replacing conventional refrigerants with natural alternatives that have a lower ozone depletion and global warming potential. In many of our new physical stores, we are increasing our use of doored cases for refrigerated products, enhancing energy efficiency and maintaining Operations Facilities product quality for longer durations. Amazon’s operations facilities include a variety of building types and sizes where we process orders for our customers. More than 30 of our Whole Foods Market stores already use To minimize energy use, these facilities feature state-of- refrigerants with low global warming potential and more the-art technology and are designed with efficient building than 100 facilities are adopting an alternative refrigerant systems. We are expanding our use of building control from Honeywell. Among them is a flagship location in system technology and real-time data analytics to optimize Brooklyn, New York, where state-of-the-art refrigeration our heating and cooling systems for occupant comfort and energy systems make the store approximately 60% while operating as efficiently as possible. Through building more efficient than the average grocery store. Locations retrofits and energy studies, we are continuously improving near San Francisco use advanced cloud computing, and optimizing the efficiency of our operations, uncovering predictive analytics, and thermal energy storage to savings opportunities, and driving carbon out of our modulate their refrigeration systems during peak energy fulfillment operations. use. Whole Foods Market is a founding member of the North American Sustainable Refrigeration Council and a Many of our operations facilities throughout the U.S., founding partner of the U.S. Environmental Protection Europe, and India are powered by on-site solar, where a Agency’s GreenChill program, which helps food retailers rooftop installation can power up to 80% of a facility’s transition to alternative refrigerants, reduce refrigerant energy use. As of June 2021, we have more than 90 charge sizes, eliminate leaks, and adopt green refrigeration rooftop solar installations on operations facilities around technologies. the world and we continue to scale this program globally. Data Centers Amazon Physical Stores AWS is continuously working to increase the efficiency of our Amazon Physical Stores provide a range of retail and facilities, and our scale allows us to achieve higher resource grocery shopping experiences for our customers. Our utilization and efficiency than typical on-premises data physical stores use highly efficient LED lighting, with centers. When possible, we incorporate direct evaporative energy-reducing lighting controls, and incorporate natural technology for cooling our data centers, reducing energy

Amazon Sustainability Report | 2020 30

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in multiple regions, and we are working with local utilities to to utilities local with working are we and regions, multiple in

using reclaimed or recycled water instead of potable water water potable of instead water recycled or reclaimed using

demonstrated our commitment to water stewardship by by stewardship water to commitment our demonstrated

cooling systems to minimize water usage. AWS has also also has AWS usage. water minimize to systems cooling

pushed into the server rooms, and we have optimized our our optimized have we and rooms, server the into pushed

through an evaporative process using water before being being before water using process evaporative an through

During the hottest months of the year, outside air is cooled cooled is air outside year, the of months hottest the During

directly supplied to the data center without using any water. any using without center data the to supplied directly

and water consumption. During cooler months, outside air is is air outside months, cooler During consumption. water and INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES GOVERNANCE PEOPLE ENVIRONMENT PROGRESS INTRODUCTION INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Transportation

Transportation is a major component of Amazon’s technology and adding thousands of charging stations business operations and a key part of our plan to across hundreds of facilities for our partners to use in reach net-zero carbon by 2040. We are optimizing North America and Europe. More than 50 Amazon delivery and transforming our transportation network through stations across North America and Europe are equipped technological innovations, efficiency enhancements, and for electric vehicle usage, and all new delivery stations are alternative solutions that allow us to deliver packages to designed with the physical layout and electrical capacity our customers more sustainably. to meet the needs of our current and future electric delivery fleets. These facilities will be able to support Electrifying Our Delivery Fleets parking and charging at night and deliveries during the day, including same-day deliveries and deliveries to lockers and In 2019, Amazon ordered 100,000 custom electric businesses. We are also partnering with publicly accessible delivery vehicles from Rivian—the largest order ever of charging networks to allow drivers to top off with clean electric delivery vehicles. We rolled out the first of these electricity when traveling outside of our charging network. vehicles in Los Angeles in February 2021 and will expand to neighborhoods in up to 15 additional U.S. cities by the end of the year. We plan to have 10,000 vehicles on the road as early as 2022 and all 100,000 vehicles deployed by 2030. One of the fastest-growing modern commercial electrification programs, this initiative is projected to save millions of metric tons of carbon per year once fully deployed. In addition to these custom electric delivery vehicles, 20Packages deliveredmillion in electric Amazon already operates thousands of electric vehicles vehicles to customers across worldwide, delivering more than 20 million packages in electric vehicles to customers across North America and North America and Europe in 2020 Europe in 2020. We expanded our European electric delivery fleet with an order for 1,800 electric vans from Mercedes-Benz, a signatory of The Climate Pledge. In Alternative Delivery Methods India, we are adding 10,000 electric vehicles to our existing We use a range of alternative delivery methods to increase fleet by 2025, including two-wheeler, three-wheeler, and efficiency and reduce emissions on last mile routes to four-wheeler vehicles designed and manufactured by local our customers’ doorsteps. In dense, urban centers like manufacturers. Hundreds of these vehicles are now on New York City, Paris, and Tokyo, we deliver packages the road, operated by Amazon India’s network of Delivery by bicycle and on foot, using push walkers. Our bicycle Service Partners in more than 20 cities across the country. fleet includes traditional bicycles and pedal-assist electric bikes connected to cargo trailers that can carry up to 45 As we expand our electric delivery fleet worldwide, we packages. We operate more than 300 e-cargo bikes to are building the infrastructure to support our vehicles and make deliveries from Whole Foods Market locations to drivers. We are retrofitting existing facilities with charging customers in Manhattan and Williamsburg, New York. In

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2021, we are expanding our micro-mobility fleet across 20 European locations to comprise more than 500 vehicles, The partnership between including e-cargo bikes, electric scooters, and walkers. Amazon India and We are also developing fully autonomous delivery innovations that can be powered by clean electricity. Mahindra Electric is Amazon Scout and Prime Air drones are electrically- powered autonomous devices that can deliver packages to a welcome step which customers without the need for a delivery vehicle. These devices are currently being designed and tested to be able “reaffirms India’s to transport small packages quickly, safely, and sustainably. significant progress in Testing New Solutions in Freight the e-mobility industry, and Air Transport Unlike last mile delivery, long-distance transport has few and highlights the low-carbon technologies available. We are exploring, testing, and investing in sustainable innovations in freight role of auto makers and air transport to reduce emissions on our longest routes. We also use data and algorithms to consolidate and e-commerce as many shipments as possible onto a single vehicle or plane, and we analyze which items are ordered most companies to achieve frequently by location to minimize long-distance deliveries. our environmental By boosting efficiency across our network, we can put fewer vehicles and planes into service, reducing the carbon sustainability goals. intensity of each package. – Shri Nitin Gadkari, Minister of Road Transport and Highways, Freight Transport Government of India We are investing in a variety of solutions to decarbonize our freight transportation network. In 2020, we ordered inflation systems. These features save an average of 100 battery electric trucks from Lion Electric, and in 2021, we gallons of diesel fuel per vehicle annually. In the UK, we use began testing hydrogen-powered trucks. We also launched double-deck trailers that allow us to double” the capacity compressed natural gas (CNG) tractors, which are fueled of a normal trailer and reduce the number of trucks on by renewable natural gas sourced from landfills and dairy the road. We are also expanding multimodal transport farms. We plan to operate more than 2,700 of these to reduce the emissions from road travel. In Europe, we tractors in North America, the UK, Germany, and France by predominantly use rail for inventory transfers between the end of 2021. These initial investments allow us to test fulfillment centers and have expanded to short trips by sea the performance of different sustainable technologies and and waterways. determine which solutions could be most effectively scaled across our network. Air Transport While we work to adopt the most efficient, cutting-edge To reduce the carbon emissions of air transport, we are vehicle technologies, we are also maximizing efficiency in investing in sustainable aviation fuels, which are derived from our existing fleets. Across North America and Europe, our renewable resources and generate fewer carbon emissions fleet includes trailers in different sizes that are equipped than standard aviation fuel. In 2020, Amazon Air secured with aerodynamic skirts, mud flaps, and automatic tire 6 million gallons of sustainable aviation fuel, signaling our

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demand for low-carbon aviation fuel alternatives. Since then, cross-sector stakeholder engagement among vehicle this fuel has been used to power some flights on the Amazon manufacturers, battery and component suppliers, state and Air network in the U.S., reducing our carbon emissions in flight local policymakers, fleet operators, and utilities. Amazon is up to 20% over standard aviation fuel when this alternative working with industry experts and organizations to advance is utilized. Most of our aircraft also feature design innovations sustainability through collaboration and innovation in the like winglets, which improve fuel efficiency by reducing drag. transportation and logistics industries. On the ground, we use cutting-edge electric equipment to In 2020, Amazon partnered with Ceres and other fleet service our planes, and we are working to equip air cargo operators to launch the Corporate Electric Vehicle Alliance, facilities with rooftop solar panels, to generate on-site bringing together companies that work to accelerate the renewable energy. transition to electric vehicles. This alliance helps aggregate We are also investing in emerging sustainable aviation corporate demand for transportation electrification, while also technologies through The Climate Pledge Fund. ZeroAvia, a providing a platform to coordinate support for policies that Climate Pledge Fund recipient, develops hydrogen-electric enable fleet electrification. In 2021, members of the alliance aviation solutions that will progressively enable turbo- published a comprehensive report on ways that utilities, propeller aircraft to transport passenger or cargo payloads regulators, and policymakers can enable fleet operators with zero carbon emissions. The Climate Pledge Fund is also to electrify commercial transportation and reduce carbon investing in Infinium, a company that focuses on converting emissions. carbon dioxide and hydrogen feedstock into net-zero carbon In 2017, Amazon signed the Sustainable Fuel Buyers’ fuels for use in today’s air transport, marine freight, and heavy Principles developed by the nonprofit Business for Social truck fleets. With support from The Climate Pledge Fund, Responsibility and its Future of Fuels working group. These these solutions will help Amazon transition away from fossil principles provide a framework to catalyze the transition to fuels across our transportation network. a sustainable road freight transportation system. Amazon

was one of 18 companies to sign the Buyer’s Principles, Partnering with Experts and Industry demonstrating our commitment to accelerate the transition Transforming the transportation industry from one that to low-carbon commercial transportation solutions. uses fossil fuels to one based on clean energy requires

Amazon Sustainability Report | 2020 34 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Sustainability Ambassadors

More than 7,500 Amazonians have joined together as Sustainability Ambassadors—a grassroots organization of sustainability-minded employees working to expand the efforts of our global teams that manage Amazon’s environmental and social impacts. Since launching in 2017, the Sustainability Ambassadors program has transformed into a collaborative community of more than 450 chapters across the world, and continues to grow. 7,50 0 Ambassadors raise awareness of sustainability as a practice Amazon Sustainability Ambassadors for all Amazonians by delivering environmental education around the globe as of June 2021 through on-site and virtual events. They lead projects and develop initiatives on Amazon campuses and across communities to help fellow Amazonians reduce their Operations Ambassadors environmental impact at home or at work. The program Ambassadors in our operations organization focus on also provides a community for sharing best practices sustainability projects that help sites reduce carbon among teams in different settings and locations. and operational waste. One example comes from an Ambassador team in Poland, where members redesigned the waste segregation process in their fulfillment center, improving waste recycling rates by more than 90%. At a fulfillment center in France, team members installed a food waste composter for associates to use at the end of their break times, generating compost that our associates are able to take home for their gardens. This solution is now being tested for adoption across our fulfillment centers in Canada. An Ambassador team in Italy identified the challenge of recycling personal protective equipment used to keep employees safe during the COVID-19 pandemic. The team found a waste services provider and set up a process to collect the used equipment, turning hard hats, gloves, and safety shoes into materials used for soundproofing walls and soft flooring for children’s play areas.

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Corporate Ambassadors Sustainability Summit Ambassadors in our corporate offices also have a unique In 2020, Sustainability Ambassadors organized the first opportunity to launch ideas with data-driven analysis Inside Sustainability Summit—a virtual educational event using Amazon technology. After auditing waste at our available to all Amazonians to learn more about Amazon’s global headquarters in Seattle, Ambassadors developed sustainability programs and partnerships. The event drew a proposal to improve waste sorting using DeepLens—a 12,500 registrations across 25 virtual sessions, from deep learning-enabled video camera from AWS. A team of Amazonians in 39 countries. The summit also featured a Amazon employees built a dataset and model that used crowdsourcing challenge for Amazon employees to present DeepLens’ object detection capabilities to identify the innovative ideas on sustainability. The winning submission waste items being discarded and deploy built-in audio to identified strategic partnerships to reduce emissions in help people identify the correct bin to use for a given item. our supply chain and contribute to Amazon’s goal of achieving net-zero carbon by 2040. With the support of senior management mentorship, this winning project is being rolled out across Europe in 2021, demonstrating I have always believed in how Sustainability Ambassadors contribute to Amazon’s great challenges, in life broader sustainability goals. and at work. I was upset that safety “shoes were [being] thrown away. At Amazon, we found a way to recycle them, so that our shoes became floors for children’s playgrounds. Alone we cannot do anything, but together we can change the world. – Maxim B., Amazon Workplace Health and Safety Manager, Vercelli, Italy

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Sustainability in the Cloud AWS is focused on efficiency and continuous innovation across our global infrastructure, as we continue on our path to powering our operations with 100% renewable energy by 2025.

Amazon Sustainability Report | 2020 37 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Cloud Efficiency

AWS has always been focused on improving efficiency in every aspect of our infrastructure. From the highly available infrastructure that powers our servers, to techniques we Climate Neutral Data Centre Pact use to cool our data centers, and the innovative server In 2021, AWS joined the data center industry in Europe to designs that deliver AWS services to our customers—energy create the Climate Neutral Data Centre Pact, an industry efficiency is a primary goal of our global infrastructure. commitment to proactively lead the transition to a climate Through our scale and focus on innovation, we can achieve neutral economy. The Pact establishes a Self-Regulatory higher resource utilization and energy efficiency than is Initiative which was developed in co-operation with the European Commission. It supports both the European Green possible for the typical on-premises data center, and we are Deal, which aims to make Europe the world’s first climate continuously working on ways to do more. neutral continent by 2050, and the European Data Strategy by The results of a study by 451 Research show that AWS’s making EU data centers climate neutral by 2030. Signatories of the Pact commit to meeting ambitious goals to facilitate infrastructure is 3.6 times more energy efficient than the Europe’s essential transition to a greener economy by agreeing median of U.S. enterprise data centers surveyed. More than to prove energy efficiency with measurable targets, purchase two-thirds of this advantage is attributable to the combination 100% renewable energy, prioritize water conservation, reuse of a more energy efficient server population and much higher and repair servers, and look for ways to recycle heat. AWS is server utilization. AWS data centers are also more energy- proud to join the Pact. We know that by working together, we efficient than enterprise sites due to comprehensive efficiency can raise the bar for data centers and help support the goals of programs that touch every facet of the facility. the European Green Deal.

For example, we have improved power efficiency and availability by removing the central Uninterruptible Power Supply (UPS) from our data center design and integrating small battery packs and custom power supplies into our racks. These changes combined reduce energy conversion loss by about 35%. AWS also continues to increase the efficiency of the custom hardware and software we design to deliver AWS services. Graviton2 is AWS’s most power-efficient processor, providing better performance per watt than any other processor we currently use. With the world’s increasing need for compute and other IT infrastructure, continually innovating at the chip level is critical to ensuring we can sustainably power the workloads of the future. AWS also works closely with our customers to accelerate mutually shared sustainability goals. Customers such as

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AWS Clean Energy Accelerator for Startups

Addressing climate change requires innovation across the world, across industries, and across startups and multi-national corporations. From distributed energy and storage solutions, to efficiency and optimization software—clean technology investment and innovation is surging. To help foster the rapid growth of clean tech innovations, AWS launched the AWS Clean Energy Accelerator in 2021. The program seeks to help clean energy startups accelerate their impact, access additional resources, and expand their reach.

The AWS Clean Energy Accelerator was developed in collaboration with Freshwater Advisors, a U.S.-based innovation Acciona, BP, Engie, and Shell are leveraging AWS to drive consultancy and venture catalyst. Together with Freshwater digital innovation, including data migration and application Advisors, AWS selected 10 startups to participate in the modernization to cloud-native technologies, and to five-week accelerator in 2021. The program offers technical, collaborate on artificial intelligence and machine learning business, and go-to-market mentorship from AWS clean energy experts, as well as collaboration opportunities with AWS energy use cases. These customers help accelerate Amazon’s customers and members of Amazon Partner Network (APN) journey to meet our Climate Pledge goal by providing looking for clean energy solutions. reliable, flexible solar and wind energy to power our operations with 100% renewable energy.

AWS’s infrastructure is 3.6 times more 3.6xenergy-efficient than the median of U.S. enterprise data centers surveyed

Amazon Sustainability Report | 2020 39 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Water Stewardship

AWS has multiple initiatives underway to use water more efficiently and use less potable (drinking) water to cool our data centers. AWS develops our water-use strategy by evaluating climate patterns for each AWS Region, local water management and availability, and the opportunity to conserve drinking water sources. Taking a holistic approach, we assess both the water and energy usage of each potential cooling solution to select the most efficient method.

Evaporative Cooling When possible, AWS incorporates direct evaporative technology to cool our data centers, reducing energy and water consumption. During cooler months, outside air is supplied directly to the data center without using any water. During the hottest months of the year, outside air is cooled through an evaporative process using water before being pushed into the server rooms, and we have optimized these cooling systems to minimize water usage. AWS is constantly innovating the design of our cooling systems to further reduce water use, and we adapt to changing weather conditions based on real-time sensor data.

Recycled Water To help conserve local drinking water sources, AWS is data centers. In the AWS U.S. West (Oregon) Region, we expanding our use of non-potable water for cooling partnered with a local utility to use non-potable water for purposes. In Northern Virginia, AWS was the first data multiple data centers, and in Northern California, we are center operator to be approved to use recycled water with retrofitting AWS data centers to use recycled water. direct evaporative cooling technology. We partnered with AWS is working with local utilities to expand distribution Loudoun Water to demonstrate the benefits of recycled infrastructure and drive faster implementation and water for industrial cooling applications and shared our adoption of recycled water for data center cooling operational best practices for using recycled water in our applications, in order to reduce our usage of potable water.

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How Using Renewable Energy Also Saves Water Community Water Programs Along with reducing our water usage, AWS looks for Shifting to renewable energy has environmental benefits opportunities to return water to the community. In our beyond lowering carbon emissions. According to the International Energy Agency, the energy sector is responsible for U.S. West (Oregon) Region, for example, we partnered 10% of global water withdrawals, used for operating thermal with the City of Umatilla and the West Extension Irrigation power plants and producing fuels. Unlike thermal power plants, District to deliver water to farmers. Since our cooling wind and solar plants do not require large amounts of water water is not dirty, instead of sending it to a wastewater to operate. In 2020, Amazon’s renewable energy generation treatment plant, we deliver it to the local community to helped to avoid the withdrawal of about 480 billion liters of be repurposed for irrigation. In our U.S. West (Oregon) water—enough to supply 1 million American households or fill up 190,000 Olympic-sized swimming pools each year. Region, we reuse 96% of cooling water generated from our data centers. AWS is also working on community water programs all around the world. We are partnering with Water.org and On-Site Water Treatment WaterAid in India and Indonesia, where water filtration AWS is implementing on-site modular water treatment plants, rainwater harvesting systems, and groundwater systems in multiple regions. As water is cycled through recharge projects will bring a combined 250 million evaporative cooling units, minerals build up as water gallons of water per year to 165,000 people. We are also evaporates, eventually reaching a level of concentration funding watershed restoration efforts with The Nature that requires replacement with fresh water. On-site water Conservancy in Cape Town and São Paulo that will treatment allows us to remove scale-forming minerals increase water supply availability by 41 million gallons and reuse water for more cycles. Increasing our “cycles of per year. concentration” allows us to continue to reduce the water intake needed to cool our data centers.

Water Efficiency Metrics Water Conservation in Sweden In each infrastructure region where we use water for AWS is working with the Swedish municipality of Katrineholm cooling, AWS has developed water efficiency metrics and local water supply company Sörmland Vatten to support to determine and monitor optimal water use for each a vital upgrade of the town’s storm water infrastructure, AWS Region, and we employ a data-driven approach to creating a new wetland just outside of Katrineholm in Stora select the most effective water reduction technologies. Djulö. The new wetland and storm water infrastructure Water metrics from each AWS Region help us evaluate improvement project is supported by a $4 million contribution technologies and understand their long-term impacts from AWS as part of our long-term commitment to sustainability. The project is due for completion in 2026 on our water usage, in order to increase efficiency as our and will help reduce flooding, improve water quality and infrastructure grows and we expand to new regions. biodiversity, and provide citizens with a new recreational space We are partnering with utilities to connect directly to utility for outdoor activities, such as hiking, biking, and birdwatching. water meters, and we are also installing our own meters to The water conservation project will also form part of a long- track real-time water usage to provide consistent data for term solution for sustainable surface water management for our operations and sustainability teams. By analyzing this the Katrineholm Logistics Center industrial park, north east of data, AWS can identify opportunities to reduce water usage Katrineholm. and rapidly make operational changes, rather than waiting for bills or usage reports.

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Amazon Sustainability Data Initiative

The Amazon Sustainability Data Initiative (ASDI) seeks to accelerate sustainability research and innovation by minimizing the cost and time required to acquire and analyze large sustainability datasets. ASDI works with scientific organizations to identify, host, and deploy key datasets on the AWS Cloud, including weather observations, weather forecasts, climate projection data, satellite imagery, hydrological data, air quality data, and ocean forecast data. Our approach allows sustainability researchers to analyze massive amounts of data in mere minutes, regardless of where they are in the world or how much local storage space or computing capacity they can access. These datasets are publicly available to anyone. In addition, ASDI provides cloud grants to those interested in exploring the use of AWS’ technology and scalable infrastructure to solve big, long-term sustainability challenges with this data.

Innovating for Sustainability in the Cloud From university researchers to local governments, federal agencies to private startups, organizations leverage ASDI to better understand the long-term opportunities to by making Earth observation data more easily accessible. address major challenges like climate change. Below are This will provide valuable insights for better decision-making some examples of how AWS customers are innovating for around prevention and planning for flooding, droughts, soil sustainability. and coastal erosion, agriculture, forest-cover, land use and land cover change, water availability and quality, and changes Digital Earth Africa (DE Africa) is helping data users across the to human settlements. African continent gain fast access to petabytes of decision- ready satellite data. The project enables African nations to AWS and the Group on Earth Observations (GEO) jointly track changes across the continent in unprecedented detail awarded $1.5 million worth of cloud services to 21 projects from 17 developing countries through the Earth Observation

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Cloud Credits Programme. These grants encourage the use of Earth observations to support sustainable environmental development, including the United Nations Sustainable Development Goals, the Sendai Framework for Disaster Risk Reduction, and the Paris Agreement on Climate Change. OpenAQ is empowering communities around the globe to clean their air by harmonizing, sharing, and using open air- quality data. Hosted on AWS, the OpenAQ platform is playing a key role in helping understand how air quality is being impacted by COVID-19. After extreme weather events—such as hurricanes, tornadoes, and floods—NOAA’s Emergency Response Imagery, hosted AWS and the Group on Earth Observations on AWS, provides timely access to baseline and post-event $1.5M remote sensing imagery over those affected areas. This (GEO) jointly awarded $1.5 million worth capability is critical to guiding action and ensuring that lives of cloud services to 21 projects from 17 and property are protected. Such imagery provides a cost- developing countries through the Earth effective way to better understand the damage sustained to both property and the environment. Observation Cloud Credits Programme. Building upon modern modeling techniques validated through peer-review science, the First Street Foundation is defining America’s flood risk by calculating the past, present, and future flood risk of every home and property in the contiguous United States. The data is available free of charge to anyone.

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Circular Economy Amazon is minimizing waste, increasing recycling, and providing options for our customers to reuse, repair, and recycle their products. We are working to send less material to the landfill and more back into the circular economy loop.

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Amazon customers want right-sized, recyclable packaging improve their packaging and ensure products are protected that minimizes waste and ensures damage-free delivery. all the way to the customer’s doorstep. We partnered with the We work to reinvent and simplify our sustainable International Safe Transit Association to craft the standards packaging options using a science-based approach that behind our FFP programs and have developed a network combines lab testing, machine learning, materials science, of structural packaging designers, testing services, and and manufacturing partnerships to scale sustainable materials suppliers to support manufacturers throughout the change across the packaging supply chain. certification process. As of June 2021, more than 2 million products qualify under our FFP programs. Driving Toward Zero Additional Packaging Amazon also collaborates directly with top brands and selling At Amazon, designing packaging starts with the customer partners to transform their packaging for FFP certification. and works backwards. Unlike traditional retail stores, We teamed up with Procter & Gamble to invent the Tide products bought online don’t need the excess packaging Eco-Box, a concentrated version of Tide’s traditional laundry and plastic materials used for displaying products on detergent compressed into a fully recyclable, shipping-safe store shelves, such as twist-ties, bindings, and clamshell package. The Eco-Box is produced using 60% less plastic and casings. In 2008, Amazon introduced Frustration-Free 30% less water than a conventional plastic jug, and requires Packaging (FFP) to help manufacturers reduce packaging no additional packing materials to ship. Thousands of other waste and develop sustainable alternatives for online brands have made similar packaging improvements by fulfillment. Our FFP programs incentivize manufacturers to participating in Amazon’s FFP programs. Specific case studies package their products in easy-to-open packaging that is are available on our Packaging Website. 100% recyclable and ready to ship to customers without additional Amazon boxes. Improving Our Packaging Materials To certify products under our FFP certification tiers, Amazon As we continue to expand our FFP programs to reduce the identifies specific steps that manufacturers can take to need for additional packaging, we are improving the design and materials used for our packaging assortment. We are reducing the weight of packaging materials, while making our packaging more robust to avoid damage in the e-commerce supply chain. We’ve also added on-package messaging to inform customers about these improvements and provide guidance on how to recycle their packaging materials. One example is our innovative paper padded mailer, which offers the same recyclability as our corrugated boxes, while 36As of June 2021, we have% reduced the taking up less space in transit and in the recycling bin. The weight of outbound packaging by over 36% paper padded mailer is made of four layers of paper and a and eliminated more than 1 million tons of water-based cushioning material, which was designed to packaging material since 2015—the equivalent easily separate in the same way that print inks and other of 2 billion shipping boxes. paper coatings are removed during the paper recycling

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items frozen or chilled during delivery. This new packaging is produced with recycled paper and eliminates the need for plastic liners or bubble bag insulation.

Optimizing Through Machine Learning How big of a box is needed for a given product? Is an Amazon box needed at all? To optimize packaging selections at Amazon’s scale, we use machine learning algorithms to arrive at the best possible packaging choices for deliveries. That means identifying which products don’t need additional packaging, and which smaller products are suitable for flexible packaging, such as padded mailers and process. We are expanding our use of paper padded bags, which are up to 75% lighter than similar-sized boxes. mailers across North America to replace the use of mixed Flexible packaging conforms around products, reducing the need for additional packing materials, and takes up 40% paper and plastic mailers by the end of 2022. less space than a box during shipping. In cases where the We are also increasing our use of flexible paper-based protection of a box is needed, machine learning helps us mailers across Europe, allowing us to significantly reduce continuously optimize box choices to fit our ever-changing the use of plastic in packaging materials by the end of catalog of products and redesign boxes to use less material. 2021. In India, Amazon eliminated single-use, thin film When packaging weighs less and is the right size to protect plastics in packaging in 2020 by replacing plastic materials customer orders, we can pack more orders into each like bubble wrap and air pillows with paper cushions and delivery, resulting in fewer trips and less fuel burned. introducing plastic-free, biodegradable tape. To reduce We also use machine learning to identify products where the need for packaging at all, we have developed a model even small packaging improvements can have significant for packaging-free shipping across more than 100 Indian impacts on reducing waste. For example, we developed a cities, delivering orders in their original packaging using machine learning model to identify liquid products with the protective containers that delivery drivers can reuse. highest average rates of customer-reported damages. We Meanwhile, we are improving the composition of our plastic subject those products to extensive testing at our Amazon packaging solutions to use less material and incorporate Packaging Lab, where we simulate a package’s journey more recycled content. We are increasing the recycled from the manufacturer to the customer, providing data and content of our plastic film bags from 25% to 50% in 2021, insights we can share with manufacturers to improve their and from 15% to over 40% for our plastic padded bags. packaging design. Together, these improvements are expected to eliminate more than 25,000 metric tons of new plastic each year. At our Whole Foods Market stores, we switched to smaller Packaging for Amazon Devices plastic produce bags and replaced all plastic rotisserie chicken In 2020, we committed to make Amazon device packaging containers with bags that use approximately 70% less plastic. 100% curbside recyclable by 2023. We are also working Combined, these changes are estimated to save nearly 2 to source 100% of the wood fiber in our packaging from million pounds of plastic annually. We also eliminated all responsibly managed forests or recycled sources. We made polystyrene meat trays across Whole Foods Market stores in significant progress toward these goals in 2020, eliminating more than 27 million plastic bags from our device packaging the U.S. and Canada. In 2019, Whole Foods Market became and sourcing more than 97% of the wood fiber packaging the first national retailer to remove all plastic straws from its for all new Echo and Fire TV devices launched in 2020 from cafes and coffee bars—avoiding 21 million straws annually. responsibly managed forests or recycled sources. At Amazon Fresh and Whole Foods Market in the U.S., we are rolling out a curbside recyclable solution to keep grocery

Amazon Sustainability Report | 2020 46 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Recycling

Amazon is committed to reducing our environmental We are also exploring alternative solutions for less common footprint through recycling initiatives in our own materials that cannot be recycled. In several European operations and partnerships that support the development locations, we work with our shipping label suppliers to of recycling infrastructure across the industry. recycle the silicone backing paper from used shipping labels into new label components. In the UK, we partner Recycling in Our Operations with a local manufacturer to collect hundreds of rolls of label backing paper each year, converting the material into Amazon is reducing the operational waste associated with filling for animal bedding products. We are looking across customer fulfillment in facilities across the globe. Corrugated our entire operations network to create new uses for waste board is the most common material that flows through materials in products, packaging, and operational processes. our operations, and we work with third-party recycling haulers to remove corrugated board from our facilities for off-site recycling. Many of these recycling haulers also Partnering to Improve Recycling supply Amazon with the packaging materials that we use for Infrastructure customer shipments, converting waste material recovered To improve curbside recycling in the U.S., we partner with from Amazon operations into new, recycled packaging. The Recycling Partnership, which supports communities and local governments with education, infrastructure, and Not all of the materials we use can be easily recycled using measurement related to curbside recycling. Along with current available systems. Plastic film, for example, is a other members of The Recycling Partnership, Amazon difficult material to process, and most municipal recycling is funding an initiative to improve recycling activities programs do not accept it. In order to innovate and solve in the western United States called The West Coast for this gap, Amazon has developed a process for on-site Contamination Initiative, which aims to increase the plastic film recycling for our operations. In 2020, we began quality and value of recyclables collected in these areas by converting plastic film into poly bags made of 100% reducing the amount of non-recyclable material collected recycled material, which are used for package-free returns through local recycling systems. at Amazon drop-off locations in the U.S. After use, the bags are collected and returned to Amazon facilities where We also invested $10 million in the Closed Loop we again convert them into new poly bags, repeating the Infrastructure Fund to finance recycling and circular recycling process. As of June 2021, on-site plastic film economy infrastructure in North America. Through recycling is available at more than 168 Amazon sites across this investment, Amazon aims to increase product and North America and Europe. packaging recycling, ensuring that material gets back into the manufacturing supply chain. Over the next decade, our investment in the Closed Loop Infrastructure Fund will improve curbside recycling for 3 million homes in communities across the U.S., diverting 1 million tons of recyclable material from landfills and eliminating the equivalent of 2 million metric tons of carbon dioxide. recyclable material from landfill and eliminating the equivalent of 2 million metric tons of carbon dioxide.

Amazon Sustainability Report | 2020 47 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Product Donations

When we have surplus inventory in our fulfillment network, Amazon donates the eligible items to charity organizations, giving products a new life, reducing waste, and helping to Nourishing Our Neighborhoods build stronger communities In 2020, Whole Foods Market launched a food redistribution program called Nourishing Our Neighborhoods that provided 21 Surplus inventory includes usable items that are overstocked, refrigerated vans to community-based food rescue organizations. returned, cosmetically damaged, or near expiration. Each of these vans provides recipient organizations with Through software built by our teams, our logistics network 20,000 pounds of rescued food from Whole Foods Market and automatically identifies inventory that can be donated, surrounding grocers and retailers every week. This effort will instead of sending these items to be recycled or to landfills. provide more than 180 million meals over the next 10 years to families in need across the U.S. and Canada. We identify partner organizations in our communities, including nonprofits and charities, and enable them to collect surplus inventory from Amazon facilities and distribute these products to people in need.

Amazon product donations are crucial in our ability to serve

and support vulnerable “communities in the Together with Whole Foods Market, Amazon U.S. These donations donated 70 million meals and 30 million have been even more 70ounces of hand sanitizer Mto Feeding America important in the face Amazon contributed more than 25 million products to our global charity partners in 2020. Together with Whole of the economic crisis Foods Market, we donated an additional 70 million meals and 30 million ounces of hand sanitizer to Feeding brought on by COVID-19. America, a U.S. network of food banks, pantries, soup – Matt Connelly, CEO of Good360 kitchens, shelters, and other community-based agencies.

Amazon Sustainability Report | 2020”48 ” INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

We distribute the majority of our surplus inventory in the partners using FBA to donate their overstocked or returned U.S. through Good360, which partners with a network of items. The service requires no additional action from selling local nonprofits to reach people in need. Amazon is one of partners, allowing Amazon to easily scale product donations the biggest suppliers of donations to Good360, helping to through our existing logistics. FBA Donations is currently provide items to low-income households, foster families, available in the U.S., the UK, France, and Japan, and we are individuals with special needs or disabilities, seniors, working to expand the program to more locations in 2021. veterans, immigrants, and more. In Europe, we partner with more than 100 charities and local organizations to distribute product donations. Amazon is a Reducing Food Loss and Waste long-term partner of In-Kind Direct International, a charity At Amazon, we are committed to reducing food loss and waste working across the UK, France, and Germany to broker within our U.S. operations by 50% by 2030. We joined the product giving among the members of its network. Through Food Loss and Waste 2030 Champions group, an effort jointly this partnership, we donated more than 200,000 products, administered by the U.S. Environmental Protection Agency and the Department of Agriculture. As part of our commitment, including toys, shoes, clothing, and household items, to we will be developing food waste reporting, generating source 1,800 charities in 2020. reduction metrics, sharing food waste reduction programs and Many of our product donations are collected through progress on our website, building new food disposition paths, and Fulfillment by Amazon (FBA) Donations, a service we expanding existing donation programs. launched in 2019 to automate the process for selling

Amazon Sustainability Report | 2020 49 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Amazon Second Chance

Amazon Second Chance is a central hub that helps Shop Like-New and Refurbished Products customers eliminate waste and give products and packaging a second life. It is available across the globe with Amazon gives customers several options to purchase pre- offerings in the U.S., Canada, the UK, France, Germany, Italy, owned and refurbished items. By shopping refurbished and Spain, and we recently expanded into Sweden and products, customers can extend the life of products and reduce Japan as well. waste. Amazon Renewed offers like-new refurbished products, such as electronics, home appliances, and more. All products are professionally inspected and tested to work and look like Trade In, Repair, or Recycle new, and are backed by the Amazon Renewed Guarantee. Amazon makes it easy for customers to retire their products Amazon Warehouse offers refurbished and returned products, without sending them into the waste stream. Through which undergo a rigorous 20-point inspection process before Amazon Trade-In, customers in the U.S., the UK, and being sold at a discount. Pre-Owned Amazon Devices provides Germany can trade in thousands of eligible items, including customers with access to fully functional pre-owned products Amazon devices, cell phones, video games and consoles, and that have been screened and tested by Amazon. All of these more in exchange for an Amazon.com Gift Card. Even non- programs reduce waste and encourage reuse by ensuring that functional Amazon devices are eligible for trade-in and will valuable products can go back into the hands of customers be recycled. Some trade-ins may be eligible for a promotional rather than being sent to landfills. credit off of a new qualifying Amazon device. Amazon also encourages customers to fix items before Disposing of Amazon Packaging replacing or disposing of them. We offer free Product Amazon Second Chance helps customers responsibly Support in seven global geographies, providing customers dispose of the packaging used to deliver Amazon orders, with technical assistance, replacement parts, and repair including Amazon device packaging and Amazon Grocery services for select items, helping them maximize the life deliveries. Customers can view recycling instructions by of the things they already own. package type on the Amazon Second Chance site, or look For electronic equipment that cannot be repaired or for instructions in their ship confirmation emails on how to traded in, customers can recycle their items free of charge properly dispose of packaging included in each shipment. through programs like Amazon Device Recycling in the U.S. and Recycle with Amazon in Europe. These programs route electronic equipment to recycling partners who dismantle the items and ensure that they are recycled and re-purposed into new products. We also partner with companies to make it easier for customers to recycle old electronics and clothing through door-to-door pick-up services like Retrievr.

Amazon Sustainability Report | 2020 50 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

Product Sustainability As part of our mission to be Earth’s most customer- centric company, we are working to give our customers access to more sustainable products, from thousands of Amazon-branded products we develop and manufacture, to millions of retail and third-party items sold in Amazon’s store.

Amazon Sustainability Report | 2020 51 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Sustainable Shopping

Amazon’s sustainable shopping initiatives give our Climate Pledge Friendly Certifications customers the chance to buy more sustainable products. We are committed to helping customers find products Amazon partners with a wide range of external certifications, that exceed the social and environmental benefits of including governmental agencies, nonprofits, and comparable options when they shop in our stores. independent laboratories to help us distinguish more sustainable products. We focus on certifications that are Helping Customers Discover reputable, transparent, and help preserve the natural world. More Sustainable Products Amazon also developed Compact by Design, our own certification to identify products that have a more efficient In 2020, Amazon launched Climate Pledge Friendly, a new design. With the removal of excess air and water, products program that uses sustainability certifications to highlight require less packaging and become more efficient to ship. products that support our commitment to help preserve At scale, these small differences in product size and weight the natural world. Customers in the U.S., the UK, France, lead to significant carbon emission reductions. To qualify Germany, Italy, and Spain will see the Climate Pledge for Compact by Design, products must have best-in-class Friendly label when shopping in Amazon’s online store, “unit efficiency,” a metric that allows us to calculate the signifying that one or more sustainability certifications volume and weight utilization for the number of units a support these products. Climate Pledge Friendly products product delivers. are clearly labeled in shopping results and have additional

sustainability information on their product pages. As of June 2021, customers can shop for more than 75,000 Climate Inviting Brands to Participate Pledge Friendly products in categories ranging from health To expand our sustainable shopping selection, we are and household items, to office products and electronics. inviting brands to participate in Climate Pledge Friendly by securing certifications for products sold in Amazon’s store that improve at least one aspect of sustainability. For example, Seventh Generation’s Easy Dose laundry detergent offers a Compact by Design certified super- concentrated detergent that uses 60% less plastic and 50% less water than the standard 100-ounce laundry bottle, enabling significant energy and material savings. If every household in the U.S. were to buy one bottle of Seventh Generation’s Easy Dose detergent instead of its conventional 100-ounce bottle, this would save 220,000 Climate Pledge Friendly tons of carbon dioxide equivalent every year, equivalent 75K to not driving 540 million miles. products as of June 2021

Amazon Sustainability Report | 2020 52 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

We love that Amazon is making it simple for cus- tomers to find sustain- able products. Amazon’s “new program will expand our reach and enable us More Ways for Customers to Shop to empower more brands Their Values to design safer and more Amazon Second Chance enables customers to eliminate sustainable products for waste and give products and packaging a second life. Amazon Handmade is a destination to find unique, the circular economy. genuinely handcrafted products created by local artisans

– William McDonough, Co-Founder of the and artisans around the world. Cradle to Cradle Products Innovation Institute Amazon Saheli in India enables women to become successful selling partners in Amazon’s store, offering a wide selection of unique regional products by women Including Amazon Brands entrepreneurs. As part of our commitment to develop more sustainable Black-Owned Businesses features products and supplies products, we are certifying many of our Amazon-branded ” sold by Black-owned businesses. The Black-owned products to qualify for Climate Pledge Friendly. In the business store is the next step in Amazon Business’ category of household goods, Presto! by Amazon offers commitment to advance economic empowerment for a refillable cleaning starter kit certified as Compact by Black business owners. Design. One canister of dissolvable refills is 98% smaller and 99% lighter than traditional cleaners—saving plastic, Women-Owned Businesses features products and space, and money while delivering a powerful clean. Echo, stories from women small business owners who Fire TV, and Fire Tablet devices are the first Amazon devices challenge, champion, and create change in their lives and to qualify for Climate Pledge Friendly, which are certified communities. by the Carbon Trust and carry its Reducing CO label—a 2 AmazonSmile is a simple way for customers to support certification that demonstrates a reduction in the carbon their favorite charitable organizations every time they footprint of products year over year. shop, at no additional cost. As of June 2021, AmazonSmile has donated more than $293 million to charities. AmazonSmile Charity Lists allows customers to donate items directly to charitable organizations. With Charity Lists, all charity accounts are verified and all lists are created and maintained by charity administrators.

Amazon Sustainability Report | 2020 53 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES Sustainable Products

Amazon works with the suppliers of our branded products owned Private Brands baby, household cleaning, personal to drive sustainability improvements across the stages of care, and beauty products, and applies to all suppliers of material sourcing, design, manufacturing, and customer these product categories in the U.S. and Europe. use. Our global teams also work closely with our suppliers to communicate our human rights standards and help Food and Grocery suppliers build their capacity to provide safe and respectful working environments. Amazon offers a range of sustainable food and grocery options and uses many sustainably sourced, third-party Setting a High Bar for certified ingredients across our Amazon-branded selection. Amazon-Branded Products This includes our commitments to sustainable palm Customers want to be sure that the products they buy oil and animal welfare in Amazon Private Brands food align with their values and needs. We are committed to products. We also avoid chemicals of concern and prohibit embedding sustainability into Amazon-branded products non-recyclable materials in Amazon Kitchen food contact as a fundamental standard across our supply chain. While packaging, as outlined in our Food Contact Materials there is no industry-wide definition of a sustainable Restricted Substance List. product, one of the ways Amazon sets a high bar for our branded products is through certifications. We partner with reputable external certifiers and use our own internal Whole Foods Market Quality Standards Compact by Design certification to certify products that Every food product sold at our Whole Foods Market stores must qualify as Climate Pledge Friendly. We also engage with meet rigorous Quality Standards. These standards prohibit more than leading organizations and industry collaboratives to drive 100 preservatives, flavors, colors, sweeteners, and other ingredients sustainability improvements, and incorporate new insights commonly found in food. All meat in our meat department is traceable into our approach as we continue to learn. back to the farm or ranch, and is sourced from animals raised without antibiotics or added growth hormones. The fresh beef, pork, chicken, turkey, and lamb in our meat department is certified to meet more Our Product Categories than 100 animal welfare standards by the Global Animal Partnership, a nonprofit alliance of producers, retailers, animal advocates, and Household Goods scientists. All wild-caught seafood in our seafood department is sourced from fisheries that are certified sustainable by the Marine Stewardship Council Standard, or rated either “Green” or “Yellow” by When it comes to household goods like cleaning supplies the Monterey Bay Aquarium Seafood Watch. Fresh or frozen, all of our and personal care products, Amazon customers want farm-raised seafood is responsibly farmed and traceable to the source, options that are safe for their families and for the planet, and requires third-party verification of water quality and dozens of without compromising on quality or price. As part of our other quality standards. Chemicals Policy, our Restricted Substance List provides an extensive list of chemicals we seek to avoid in Amazon-

Amazon Sustainability Report | 2020 54 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

Fashion and Apparel Our Material Commitments We are committed to making it easier for our customers to choose high-quality, sustainable Palm Oil apparel products. We are working to As of 2021, we use sustainably certified palm oil in all lower the environmental impact of our Amazon Private Brands food products in North America Amazon-owned Private Brands apparel and Europe. In a small number of cases, palm oil credits products, and we partner directly with our may be used to cover very small volumes and complex suppliers to find solutions that promote the derivatives. We revisit these cases annually with applicable use of sustainably produced fabrics and recycled suppliers and agree on plans to transition to physically materials, including cotton, leather, and manmade certified sustainable palm oil where possible. cellulosic fibers. We collaborate with leading apparel organizations to incorporate industry Cotton best practices and support collective action. We are working to ensure that all Amazon-owned

Private Brands apparel products are made using cotton Amazon Devices from more sustainable sources by the end of 2022. This We are making Amazon devices more sustainable, from includes using cotton sourced from recycled materials, how we build them to how our customers use them. We from farms certified as producing organic cotton, or incorporate recycled materials into many new Amazon through the Better Cotton Initiative (BCI), a global devices, giving new life to materials that could otherwise nonprofit that aims to transform the cotton supply end up in waste streams. We have also developed features chain by developing Better Cotton as a sustainable like Low Power Mode to reduce the energy devices mainstream commodity. consume during periods of inactivity over their lifetime. In After joining BCI in 2019, we sourced 48% of the cotton 2020, we added Low Power Mode to the latest models of used for our Amazon-owned Private Brands apparel Echo and Fire TV devices and are rolling out free over-the- products as Better Cotton in 2020. While Better Cotton air updates to bring Low Power Mode to older models of is not physically traceable to end products, BCI farmers devices already in customers’ homes. benefit from the demand for Better Cotton in equivalent volumes to those we source. Amazon is also a member of BCI’s Retailer and Brand Advisory Panel on Traceability.

In 2019, Amazon signed the Responsible Sourcing Network’s

public Cotton Pledges, committing to not source cotton from Turkmenistan and Uzbekistan for Amazon-owned Private Brands products until the pervasive use of government- Alexa Energy Dashboard mandated forced labor is stopped. In 2021, we began We are making it easier for customers to manage their home participating in a Responsible Sourcing Network initiative energy use with the Alexa energy dashboard, available in called YESS: Yarn Ethically & Sustainably Sourced, which the U.S. The dashboard works with compatible smart lights, works to address forced labor in the cotton value chain. plugs, switches, water heaters, thermostats, televisions, and Echo devices, allowing customers to easily track the energy these devices use. Customers can also enable Alexa to help Cellulosic Fibers them conserve energy through a new Hunches feature. For By 2022, we will ensure that none of the manmade example, if Alexa has a Hunch that a customer is away and forgot to turn off a light, Alexa can automatically turn it off, cellulosic fibers (including rayon, viscose, lyocell, and helping customers save energy and reduce carbon emissions. modal) sourced for Amazon-owned Private Brands apparel products are derived from ancient or endangered forests,

Amazon Sustainability Report | 2020 55 INTRODUCTION PROGRESS ENVIRONMENT PEOPLE GOVERNANCE APPENDICES

endangered species’ habitats, or other controversial Our Commitments Beyond Materials sources, as defined by the nonprofit organization Canopy’s tools and reports. Our approach to cellulosics includes Human Rights using fabrics that provide assurance on traceability and use Amazon is committed to ensuring the people and best-available processing technology, as well as supporting communities that support our entire value chain are the use of innovative lower-impact alternative fiber treated with fundamental dignity and respect, and we sources, such as recycled fiber from used clothing. strive to ensure the products and services we provide are

produced in a way that respects internationally recognized Recycled Fabrics human rights. We will increase the use of recycled fabrics in Amazon- owned Private Brands apparel products, including moving Read more about our commitment from conventional to recycled polyester, and launching to human rights on page 58. products made from innovative recycled fibers. In 2020, we joined the Textile Exchange, a global nonprofit that Animal Welfare works with its members to drive industry transformation in As retailers of animal-derived products, we recognize preferred fibers, including recycled materials. our responsibility to uphold animal welfare within our supply chain. We expect our suppliers to uphold the Five Leather Freedoms framework for animal welfare, which mandates In 2020, we joined the Leather Working Group, a freedom from hunger and thirst; freedom from discomfort; nonprofit membership organization that works to improve freedom from pain, injury, or disease; freedom to express environmental stewardship within the global leather normal behavior; and freedom from fear and distress. We industry. By the end of 2023, we will source all leather expect our suppliers to comply with all applicable laws and used in Amazon-owned Private Brands apparel and shoe to take a zero-tolerance approach to animal cruelty, abuse, products from tanneries that meet the Leather Working and neglect. We encourage suppliers to continuously Group’s bronze level award or higher. improve their animal welfare standards and practices, and to work toward recognized animal welfare certifications or Product Labels industry guidelines that include welfare provisions.

As of 2020, all new woven labels in Amazon-owned Private Chemicals and Restricted Substances Brands apparel products are made from recycled fabric and all new swing tags are made from paper certified by the Part of our commitment to quality is avoiding chemicals of Forest Stewardship Council. concern in our products that can affect human health and/ or the environment. We define chemicals of concern as Recycled Materials those chemicals that: (1) meet the criteria for classification as a carcinogen, mutagen, or reproductive or other In 2020, we launched Echo and Fire TV devices that include systemic toxicant; or (2) are persistent, bioaccumulative, 100% post-consumer recycled fabric, 100% recycled and toxic. We use leading science and customer feedback die-cast aluminum, and 30-50% post-consumer recycled to prioritize which chemicals of concern to focus on based plastic, depending on the product. We also incorporated on product type, customer concerns, and the availability 50% post-consumer recycled plastic into certain power of safer alternatives. Learn more about the chemicals we adapters that ship with our devices. seek to avoid in our Restricted Substance List and our Food

Contact Materials Restricted Substance List.

Amazon Sustainability Report | 2020 56 Disclaimer and Looking Forward Statements

The information and opinions contained in this report are provided as of the date of this report and are subject to change without notice. Amazon does not undertake to update or revise any such statements. This report represents current Amazon policy and intent and is not intended to create legal rights or obligations. This report may contain or incorporate by reference public information not separately reviewed, approved, or endorsed by Amazon and no representation, warranty, or undertaking is made by Amazon as to the accuracy, reasonableness, or completeness of such information. Inclusion of information in this report is not an indication that the subject or information is material to Amazon’s business or operating results. This report is originally drafted in English and then translated into other languages. The English version is the authoritative version.

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current facts, including statements regarding our plans, initiatives, projections, goals, commitments, expectations, or prospects, are forward-looking. We use words such as aim, believe, commit, drive, estimate, ensure, expect, goal, intend, may, mission, plan, project, seek, strategy, strive, target, and will or similar expressions to identify forward-looking statements. Forward-looking statements reflect management’s current expectations and inherently involve risks and uncertainties. Actual results could differ materially due to a variety of factors, including assumptions not being realized, scientific or technological developments, evolving sustainability strategies, changes in carbon markets, evolving government regulations, our expansion into new products, services, technologies, and geographic regions, or other changes in circumstances, as well as the factors set forth in the “Risk Factors” section of Amazon’s most recent Annual Report on Form 10-K and subsequent filings. The standards of measurement and performance contained in the report are developing and based on assumptions, and no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this report can or will be achieved.

Amazon Sustainability Report | 2020